Skip to content

CS Professional · Compliance Management, Audit and Due Diligence · Audit Process and Documentation

A firm of practising company secretaries is auditing a small trading company. The partner asks whether the risk assessment must be documented in a separate working paper. Under SA 315, which statement is correct?

The documentation may be incorporated in the overall strategy and audit plan, or in the documentation of further procedures. SA 315 leaves the manner to the auditor's professional judgment, influenced by the entity's nature, size, complexity and the audit methodology used.

  1. AIt must always be a separate standalone document
  2. BIt may be documented in the overall strategy and audit plan, or as part of documentation of further procedures, as the auditor determines using professional judgmentCorrect
  3. CIt need not be documented for small entities
  4. DIt must be documented only after the audit report is signed

Explanation

SA 315 leaves the manner of documentation to the auditor's professional judgment. For small entities it may be incorporated in the overall strategy and audit plan, and results may be documented separately or with further procedures. The form and extent depend on the entity's nature, size and complexity.

Did you get it right without looking?

One question tells you little. A timed set on Audit Process and Documentation shows your real accuracy, how long you take and where you lose marks.

Practise Audit Process and DocumentationFree diagnostic mock

More Audit Process and Documentation questions